[LOGO PHOENIX] PHOENIX LIFE INSURANCE COMPANY
A Stock Company
--------------------------------------------------------------------------------
The Phoenix Life Insurance Company ("the Company") agrees, subject to the
conditions and provisions of this contract, to provide the benefits specified in
this contract.
If the contract is in force on the Maturity Date, we shall begin to pay a series
of variable annuity payments to the Owner beginning on the Maturity Date for the
longer of a period certain of 10 years or the life of the Annuitant, unless
another option is elected before the Maturity Date. The amount of each annuity
payment, as described in the Annuity Benefits section, will be based on the
Contract Value on the Maturity Date and the Annuity Payment Factors. The
Contract Value will depend on the rate of interest credited to the Guaranteed
Interest Account and the investment experience of the Investment Options. In
addition, for Variable Annuity Payment Options, the amount of annuity payments
will vary with the investment experience of the Investment Options during the
annuity payment period.
We are issuing the contract in consideration of the application, if any, and our
receipt of the initial premium payment at our Annuity Operations Division. The
provisions of this and the following pages and any attachments make up your
contract.
RIGHT TO RETURN THIS CONTRACT. This contract may be returned within 10 days (30
days for replacements) after you receive it for a refund of any premiums paid
under this contract, less any withdrawals made as of the date of cancellation.
You may return the contract by delivering or mailing it to us at the address
below or by returning it to the agent or agency office through which it was
delivered.
Phoenix Life Insurance Company
[Annuity Operations Division
PO Box 8027
Boston, MA 02266-8027
Telephone (000) 000-0000]
Signed for Phoenix Life Insurance Company at [00 Xxxx Xxxxxx Xxxxx, Xxxx
Xxxxxxxxx, Xxx Xxxx 00000.].
[/s/Xxxx Xxxxx] [/s/Xxxx Xxxxx]
[Chairman, President and Chief Executive Officer] [Secretary]
READ YOUR CONTRACT CAREFULLY
It is a legal contract between the Owner and Phoenix Life Insurance Company.
All values and benefits based on the investment experience of the Investment
Options may increase or decrease and are variable and not guaranteed as to
dollar amount.
Flexible Premium Deferred Variable Annuity
Nonparticipating - not eligible for dividends
08VA ME
TABLE OF CONTENTS
Section Provision
1. Schedule Pages 3
2. Definitions 14
3. Entire Contract 16
4. Owner(s) and Beneficiary(ies) 16
5. Premium Payments and Allocation 16
6. Separate Account and Investment Options 17
7. Transfer Options 19
8. Guaranteed Interest Account 20
9. Withdrawals, Surrender, Termination 21
10. Expense Charges 22
11. Contract Value 22
12. Waiver Provisions 23
13. Death Benefit 23
14. Assignment 24
15. Deferral of Determinations 25
16. Proof Required for Payment 25
17. Misstatements 25
18. Change of Maturity Date 25
19. Statement of Account 25
20. Annuity Benefits 26
21. Annuity Payment Options 26
2
SECTION 1: SCHEDULE PAGES
Owner: [Xxxx Xxx]
Oldest Owner's Age: [65]
Oldest Owner's Sex: [Male]
Contract Number: [13000000]
Initial Premium Payment: [$100,000.00]
Contract Date: [March 9, 2009]
Maturity Date: [March 9, 2039]
Annuitant: [Xxxx Xxx]
Annuitant Age: [65]
Annuitant Sex: [Male]
[Joint Annuitant: [Xxxx Xxx]
Joint Annuitant Age: [65]
Joint Annuitant Sex: [Female]]
Beneficiary: [As specified later in this Section 1]
Death Benefit Option: [1 - Return of Premium]
Maximum Annuitant Annuitization Age: [95]
Maximum Owner Annuitization Age: [95]
Terminal Illness Period: [6 months]
Elimination Period [120 days]
Maximum Guaranteed
Interest Account Percentage: [5%]
Guaranteed Minimum Interest Rate: [1.00% for the calendar year of issue]
Minimum DCA Transfer Amounts:
Monthly [$25]
Quarterly [$75]
Semi-Annual [$100]
Annual [$300]
GIA Transfer Limit: [12 transfers per Contract Year]
Maximum GIA Transfer Amount [$1,000]
Maximum GIA Transfer Percentage [25%]
GIA Payment Limit [$250,000]
Minimum Withdrawal Amount: [$100]
Minimum Premium Payment: [$200]
Maximum Premium Payment: [$1,000,000]
Maximum Aggregate Premium Payment: [$5,000,000]
Assumed Investment Rate: [4.5%]
VASP-STND2 3 ME
SECTION 1: SCHEDULE PAGES (continued)
Owner: [Xxxx Xxx]
Contract Number: [13000000]
Premium Allocation Schedule
[Guaranteed Interest Account: 50%
3 Year Guarantee Period: 25%
Money Market #122: 25%]
4
SECTION 1: SCHEDULE PAGES (continued)
Owner: [Xxxx Xxx]
Contract Number: [13000000]
INVESTMENT OPTION FEES
Daily Mortality and Expense Risk Fee: [0.001979% (Based on an annual rate of
0.725%)]
Daily Administrative Fee: [0.000342% (Based on an annual rate of
0.125%)]
CONTRACT CHARGES
[Tax charge: 0.00% of each premium payment]
Maximum Transfer Charge: [$25 per transfer]
Annual Administrative Charge: [$35. Charge is waived if Contract Value
exceeds $50,000.]
Surrender Charge: Deducted in accordance with the
following Surrender Charge Schedule*
Complete Years from
receipt of each Surrender Charge
Premium Payment Percentage
------------------- ----------------
[0 9%
1 8%
2 7%
3 6%
4 5%
5 4%
6 3%
7 2%
8 1%
9+ 0%]
* See Section 9 for a description of how these charges are determined.
5
SECTION 1: SCHEDULE PAGES (continued)
Owner: [Xxxx Xxx]
Contract Number: [13000000]
BENEFICIARY
[Xxxx Xxx]
VASP-STND2 6 ME
SECTION 1: SCHEDULE PAGES
Owner: [Xxxx Xxx]
Oldest Owner's Age: [65]
Oldest Owner's Sex: [Male]
Contract Number: [13000000]
Initial Premium Payment: [$100,000.00]
Contract Date: [March 9, 2009]
Maturity Date: [March 9, 2039]
Annuitant: [Xxxx Xxx]
Annuitant Age: [65]
Annuitant Sex: [Male]
[Joint Annuitant: [Xxxx Xxx]
Joint Annuitant Age: [65]
Joint Annuitant Sex: [Female]]
Beneficiary: [As specified later in this Section 1]
Death Benefit Option: [1 - Return of Premium]
Maximum Annuitant Annuitization Age: [95]
Maximum Owner Annuitization Age: [95]
Terminal Illness Period: [6 months]
Elimination Period [120 days]
Maximum Guaranteed
Interest Account Percentage: [5%]
Guaranteed Minimum Interest Rate: [1.00% for the calendar year of issue]
Minimum DCA Transfer Amounts:
Monthly [$25]
Quarterly [$75]
Semi-Annual [$100]
Annual [$300]
GIA Transfer Limit: [12 transfers per Contract Year]
Maximum GIA Transfer Amount [$1,000]
Maximum GIA Transfer Percentage [25%]
GIA Payment Limit [$250,000]
Minimum Withdrawal Amount: [$100]
Minimum Premium Payment: [$200]
Maximum Premium Payment: [$1,000,000]
Maximum Aggregate Premium Payment: [$5,000,000]
Assumed Investment Rate: [4.5%]
VASP-ENH2 7 ME
SECTION 1: SCHEDULE PAGES (continued)
Owner: [Xxxx Xxx]
Contract Number: [13000000]
Premium Allocation Schedule
[Guaranteed Interest Account: 50%
3 Year Guarantee Period: 25%
Money Market #122: 25%]
8
SECTION 1: SCHEDULE PAGES (continued)
Owner: [Xxxx Xxx]
Contract Number: [13000000]
PREMIUM ENHANCEMENTS
Premium Enhancement/1/: Determined in accordance with the following
Premium Enhancement Table
Premium Enhancement Percentage Table
Age of Oldest Owner on Contract Date Less than Age 81
Net Cumulative Premium Payment/2/
Contract Years up to $5,000,000
-------------- ---------------------------------
1+ [7.0%]
Premium Enhancement End Date: the Contract Anniversary immediately
following the [Oldest Owner's/Annuitant's]
[80th] birthday
Additional Enhancement Period/3/: [the 90 day period] measured from the
Contract Date
/1/ A Premium Enhancement is an amount we will credit to the Contract Value at
the time the initial premium payment and each subsequent premium payment is
received at our Annuity Operations Division. Premium Enhancements are not
considered premium payments, but rather are always considered Earnings
credited to the contract at the time of receipt of each premium payment. No
Premium Enhancements, however, will be credited to the Contract Value after
the Contract Anniversary immediately following the Premium Enhancement End
Date (shown above). Whenever a premium payment is received, we first
determine the Net Cumulative Premium Payment. The amount of each Premium
Enhancement credited to the Contract Value is based on the Net Cumulative
Premium Payment then in effect and the applicable Premium Enhancement
Percentage in accordance with the Premium Enhancement Table shown above.
Premium Enhancements are payable from our General Account.
Unless we agree otherwise, each Premium Enhancement is allocated to the
Investment Options in the same ratio as the applicable premium payment is
allocated.
Premium Enhancements are not considered premiums when determining certain
death benefit options, as specified in Section 13, or any optional living
benefit riders.
Premium Enhancements are not included in the Contract Value during the
Right To Return This Contract provision, and therefore not included in the
amount refunded. Premium Enhancements are not considered premiums.
/2/ "Net Cumulative Premium Payment" is added, and means on the Contract Date,
an amount equal to the initial premium payment. Thereafter, on each day
while this contract is in force, the Net Cumulative Premium Payment is
equal to the sum of all premium payments received less the sum of all Gross
Withdrawals.
Under Definitions, the term "Adjusted Premium" means any premium payment or
Premium Enhancement allocated to the Guaranteed Interest Account, as
adjusted to include any interest credited on and any contract charges or
withdrawals deducted from such premium payment.
Under Definitions, the term "Net Contract Value" means the Contract Value
less the value of any Premium Enhancements.
9 ME
SECTION 1: SCHEDULE PAGES (continued)
Owner: [Xxxx Xxx]
Contract Number: [13000000]
/3/ Premium payments received during the Additional Enhancement Period will be
aggregated for purposes of determining the applicable Premium Enhancement
Percentage. If no withdrawals have been made, and a premium payment
received during the Additional Enhancement Period results in the aggregate
of all premium payments received during such period to qualify for a higher
Premium Enhancement Percentage, then the applicable next higher Premium
Enhancement Percentage will apply to that specific premium payment. Such
specific premium payment is referred to as the Trigger Premium. Each
premium payment received after the Trigger Premium during the Additional
Enhancement Period will also qualify for the applicable next higher Premium
Enhancement Percentage. Furthermore, during the Additional Enhancement
Period, any premium payments received prior to the Trigger Premium will
qualify for an increase in the Premium Enhancement Percentage. Such
increase is equal to A minus B, where:
A = the applicable higher Premium Enhancement Percentage as a
consequence of aggregating premiums; and
B = the actual Premium Enhancement Percentage previously applied
including any previous increases to that percentage.
Such increase will be effective on the date of receipt of the Trigger
Premium. If any withdrawals have been made during the Additional
Enhancement Period, we will continue to determine the applicable Premium
Enhancement Percentage as specified above, except that any premium payments
received prior to the Trigger Premium will not qualify for an increase in
the Premium Enhancement Percentage.
Under Definitions, the term "Gross Withdrawal" means the amount deducted
from the Contract Value as a consequence of your request for a withdrawal,
including the requested amount, any applicable Surrender and Premium
Enhancement Recapture Charges and any applicable taxes.
Under Definitions, the term "Net Withdrawal" means the payment you will
receive as a consequence of your request for a withdrawal, provided
sufficient Contract Value is available. The Net Withdrawal is equal to the
Gross Withdrawal, less any applicable Surrender and Premium Enhancement
Recapture Charges, and any applicable taxes.
Premium Enhancements will be included in the determination of Accumulation
Units in the same manner as premium payments.
With respect to the GIA Account, interest will be credited to any Premium
Enhancement in the same manner as premium payments.
Prior to the Maturity Date, you may surrender your contract or withdraw a
portion of your Contract Value, without a Surrender Charge or Premium
Enhancement Recapture Charge, under the Nursing Home or Terminal Illness
Waiver, if the conditions provided in the contract are satisfied.
When Surrender Charges are waived due to either the Nursing Home or
Terminal Illness Waiver, any Premium Enhancements not previously assessed a
Premium Enhancement Recapture Charge that are credited during the [12]
months prior to the date of surrender or withdrawal, will be deducted from
the Contract Value prior to payment of the surrender or withdrawal.
Any death benefit proceeds will be reduced by any Premium Enhancements not
previously assessed a Premium Enhancement Recapture Charge credited during
the [12] months prior to the date of death, unless the Spousal Continuation
Option is in effect, as specified in the contract. In no situation will we
recapture an amount that would result in death proceeds after recapture to
be less than 100% of premium payments less "Adjusted Partial Withdrawals.
Any Premium Enhancement, not previously assessed a Premium Enhancement
Recapture Charge, that is credited during the [24] months prior to election
of an Annuity Payment Option, will be deducted from the Contract Value
prior to calculation of annuity payments.
Item (3) of the Net Investment Factor provision in Section 6: Separate
Account and Investment Options, has been replaced with the following:
"3. for each calendar day in the business period subtracting from the
result of ((1) divided by (2)), an amount equal to the Mortality and
Expense Risk Fee plus the Daily Administrative Fee, Premium
Enhancement Fee and any daily tax fee."
10 ME
SECTION 1: SCHEDULE PAGES (continued)
Owner: [Xxxx Xxx]
Contract Number: [13000000]
INVESTMENT OPTION FEES
Daily Mortality and Expense Risk Fee: [0.001979% (Based on an annual rate of
0.725%)]
Daily Administrative Fee: [0.000342% (Based on an annual rate of
0.125%)]
CONTRACT CHARGES
[Tax charge: 0.00% of each premium payment]
Maximum Transfer Charge: [$25 per transfer]
Annual Administrative Charge: [$35. Charge is waived if Contract Value
exceeds $50,000.]
Surrender Charge: Deducted in accordance with the
following Surrender Charge Schedule*
Complete Years from
receipt of each Surrender Charge
Premium Payment Percentage
------------------- ----------------
[0 9%
1 8%
2 7%
3 6%
4 5%
5 4%
6 3%
7 2%
8 1%
9+ 0%]
* See Section 9 for a description of how these charges are determined.
11
SECTION 1: SCHEDULE PAGES (continued)
Owner: [Xxxx Xxx]
Contract Number: [13000000]
PREMIUM ENHANCEMENT FEE AND RECAPTURE CHARGE
Premium Enhancement Fee/1/: Premium Enhancement Fee
Number of Contract Years Percentage
------------------------ -----------------------
[Lifetime] [0.80%]
Premium Enhancement Recapture Charge/2/: Deducted in accordance with the
following Premium Enhancement
Recapture Charge Schedule*
Complete Years from receipt Percentage of Premium
of each Premium Payment Enhancement
--------------------------- ---------------------
0+ 0%
/1/ Premium Enhancement Fee
The Premium Enhancement fee is deducted daily in accordance with the Premium
Enhancement Fee table shown above. Each Investment Option bears a pro rata share
of such expense based on the proportionate value of each of the Investment
Options.
/2/ Premium Enhancement Recapture Charge
A Premium Enhancement Recapture Charge may apply to part or all Premium
Enhancements credited upon surrender or withdrawal. For each withdrawal, or upon
surrender, we will determine the amount of the Premium Enhancement, if any, that
corresponds to the portion of the premium payments being withdrawn. Any Premium
Enhancement that corresponds to the premium payments withdrawn in excess of the
Free Withdrawal Amount will be subject to the Premium Enhancement Recapture
Charge. The Premium Enhancement Recapture Charge will be applied against
corresponding premium payments on a first-in, first-out ("FIFO") basis, based on
the period of time from the date we received the corresponding premium payment
to the date of withdrawal. The Premium Enhancement Recapture Charge is equal to
the applicable Premium Enhancement Percentage, shown in the Premium Enhancement
Percentage Table (see schedule pages), multiplied by the applicable portion of
the Premium Enhancement. Item A under the Free Withdrawal Amount provision of
the contract equals the sum of all premium payments not previously withdrawn
that are no longer subject to Surrender or Premium Enhancement Recapture
Charges. Premium Enhancement Recapture Charges are waived when the conditions
under Section 12 are satisfied.
12
SECTION 1: SCHEDULE PAGES (continued)
Owner: [Xxxx Xxx]
Contract Number: [13000000]
BENEFICIARY
[Xxxx Xxx]
VASP-ENH2 13 ME
SECTION 2: DEFINITIONS
The term "Account" means an Investment Option or a Guaranteed Interest Account.
The term "Accumulation Unit" means a standard of measurement as described
Section 6, used to determine the value of this contract and its interest in the
Investment Options prior to the Maturity Date and for amounts held under Annuity
Payment Option L.
The term "Accumulation Unit Value" is as specified in Section 6.
The term "Adjusted Premium" means any premium payment allocated to the
Guaranteed Interest Account as adjusted to include any interest credited on and
any contract charges or withdrawals deducted from such premium payment.
The term "Age" means the age of the individual on his or her last birthday.
The term "Annuitant or Joint Annuitant" means the person or persons on whose
continuation of life or lives the annuity benefit is based upon for this
contract. The Annuitants are shown in the schedule pages when the contract was
issued. Unless otherwise prohibited by the terms of this contract and any
attachments, the Annuitant or Joint Annuitant may be changed prior to the
Maturity Date. There may, however, be tax consequences.
The term "Annuity Unit" means a standard of measurement used to determine the
amount of each periodic payment made under Variable Annuity Payment Options I,
J, K, M and N. The number of Annuity Units in each Investment Option with assets
under the chosen option is equal to the portion of the first payment provided by
that Investment Option divided by the Annuity Unit Value for that Investment
Option on the first Payment Calculation Date.
The term "Annuity Unit Value" means a standard of measurement for determining
the value of each Investment Option. On the first business day selected by us,
we set all Annuity Unit Values in each Investment Option of the Separate Account
at $1.000000. The Annuity Unit Value on any subsequent business day is equal to
the Annuity Unit Value of the Investment Option on the immediately preceding
business day multiplied by the Net Investment Factor for that Investment Option
for the business period divided by 1.000000 plus the rate of interest for the
number of days in the business period based on the Assumed Investment Rate.
The term "Assumed Investment Rate" means an assumed investment rate as specified
in the schedule pages. We use this rate to determine the first payment under
variable Annuity Payment Options I, J, K, M and N. Future payment amounts under
these options will depend on the relationship between the Assumed Investment
Rate and the actual investment performance of each Investment Option as
reflected in the Investment Option's Annuity Unit Value. The Assumed Investment
Rate is the net annual investment return that will need to be earned by each
Investment Option of the Separate Account for there to be no reduction in the
amount of the monthly payments under these options.
The term "Beneficiary" is as defined in Section 4.
The term "business day" means any day that we are open for business and the New
York Stock Exchange is open for trading. The Accumulation Unit Value of an
Investment Option will be determined at the end of each business day. We will
deem each business day to end at the close of regularly scheduled trading of the
New York Stock Exchange (currently 4:00 p.m. Eastern Time) on that day.
The term "business period" means the period in days from the end of one business
day through the next business day.
The term "Contract Anniversary" means the same day and month of each year as the
Contract Date following the Contract Date. If the day does not exist in a month,
the last day of the month will be used.
The term "Contract Date" means the date this Contract is issued and the date
from which Contract Years are measured. The Contract Date is shown in the
schedule pages. The contract will begin in effect on the Contract Date provided
your premium payment is received and the Owner is alive.
The term "Contract Value" means the sum of the values under the contract of all
Accumulation Units held in the Investment Options of the Separate Account, and
the Adjusted Premium payments held in the Guaranteed Interest Account.
The term "Contract Year" means the 12-month period beginning on the Contract
Date and each 12-month period thereafter
The term "Earnings" equals the excess of Contract Value over premiums not
previously withdrawn from the contract.
14 ME
The term "Eligible Premium Payments" means premium payments received that (i)
are still subject to Surrender Charges, and (ii) have not been previously
withdrawn with an associated Surrender Charge.
The term "Elimination Period" means the minimum period of time which an Owner
must be confined to a Licensed Nursing Home for the Nursing Home Waiver to be
exercised. For further details see Section 12.
The term "GIA Payment Limit" means the maximum amount of cumulative premium
payments that can be made to the GIA in any one-week period.
The term "Gross Withdrawal" means the amount deducted from the Contract Value as
a consequence of your request for a withdrawal, including the requested amount,
any applicable Surrender Charges and any applicable taxes.
The term "Investment Option" means one of the subaccounts of the Separate
Account to which assets under this contract may be allocated.
The term "Maturity Date" means the date annuity payments commence in the form of
an Annuity Payment Option. The Maturity Date is as shown in the schedule pages
or as later changed. For further details see Section 18.
The term "Maximum Annuitant Annuitization Age" means the Annuitant's age that
determines the latest possible Maturity Date. For further details see section
18.
The term "Maximum GIA Transfer Amount" means the maximum amount that may be
transferred from the GIA at any one time.
The term "Maximum GIA Transfer Percentage" means the maximum percentage of the
value of the GIA that may be transferred from the GIA at any one time.
The term "Maximum Owner Annuitization Age" means the Owner's age that determines
the latest possible Maturity Date. For further details see section 18.
The term "Monthly Processing Date" means the same day of each month as the
Contract Date. If the day does not exist in a month, the last day of the month
will be used.
The term "Net Contract Value" means the sum of the values under the contract of
all Accumulation Units held in the Investment Options of the Separate Account,
and the Adjusted Premium payments held in the Guaranteed Interest Account.
The term "Net Withdrawal" means the payment you will receive as a consequence of
your request for a withdrawal, provided sufficient Contract Value is available.
The Net Withdrawal is equal to the Gross Withdrawal, less any applicable
Surrender Charges, and any applicable taxes.
The term "Owner" or "Owners" means the person, persons, or entity with ownership
rights in the Contract. The Owner is as shown in the schedule pages or as later
changed. For further details see Section 4.
The term "Payment Calculation Date" means the date we calculate annuity payments
under a variable payment annuity option. The first Payment Calculation Date is
the business day on or next following the Maturity Date unless we agree
otherwise. After the first Payment Calculation Date, we will calculate payments
on the same date each month. We use the next following business day if such date
is not a business day.
The term "Payment Date" means the business day on which a premium payment is
received at our Annuity Operations Division unless it is received after the
close of the New York Stock Exchange, in which case it will be the next business
day.
The term "spouse" is as defined under Federal law and specifically does not
include a Civil Union or Domestic Partner.
The term "Surrender Value" is as defined in Section 9.
The terms "we, us, and our" refer to the Company.
The terms "written request" and "written notice" mean a request or notice we
receive in writing at our Annuity Operations Division in a form satisfactory to
us.
The terms "you" and "your" refer to the Owner(s) of this contract, as defined in
Section 4.
15 ME
SECTION 3: ENTIRE CONTRACT
This contract is an agreement between the Owner(s) and the Company. This
contract and any attachments comprise the entire contract. The contract will be
in effect on the Contract Date provided the initial premium is received and the
Owner is alive. Any change in terms of this contract, as required to conform
with law, must be signed by one of our executive officers and countersigned by
another one of our executive officers. Any benefits payable under this contract
are payable at our Annuity Operations Division. All paid-up annuity, surrender,
and death benefits under this contract are not less than the minimum benefits
required by any statute of the state where this contract is delivered or issued
for delivery. Any additional amounts we credit to the contract will be treated
as any other gain in the contract and will increase the paid-up annuity, cash
surrender, and death benefits. Paid-up annuity, cash surrender benefits and
death benefits will be reduced by any withdrawals.
SECTION 4: OWNER(S) AND BENEFICIARY(IES)
Owner(s)
The Owner is the person, persons, or entity, with sole and absolute power to
exercise all rights and privileges without the consent of any other party,
except as otherwise provided by this contract or unless you provide otherwise by
written notice. If there is more than one Owner, all Owners must consent to any
changes. If no Owner is named, the Annuitant will be the Owner. Under contracts
used with certain qualified plans or IRAs, the Owner must be the Annuitant. If
you are a non-natural Owner, any change to or the death of the Annuitant will be
treated as the death of an Owner. Under certain circumstances, more than one
Owner may be named. If an Owner dies, all rights vest equally in the surviving
Owners. If any Owner dies prior to the Maturity Date, the death benefit will be
paid as provided in Section 13.
Beneficiary(ies)
The Beneficiary is the person who receives death benefits under this contract.
If there is no surviving Beneficiary when the death benefit becomes payable in
accordance with Section 13, the Owner will be the Beneficiary. If the Owner is
not living, then the estate of the Owner will be the Beneficiary.
The Owner(s) and the Beneficiary will be as shown in the contract unless you
change them or they are changed by the terms of this section.
Changes
While this contract is in effect, you may change the Beneficiary. You may also
change the Owner or Annuitant with our consent. You may only change the Owner by
transferring ownership of the entire contract between spouses or to a
non-grantor trust for the benefit of a natural person(s). If the Owner is a
natural person, you may change Annuitant(s) or name a new Annuitant upon the
death of the Annuitant prior to the Maturity Date. If you do not name a new
Annuitant, and the Owner is a natural person, the Owner will become the
Annuitant.
A request to make any changes must be made by written request. If there is more
than one Owner, all Owners must sign the request. When we receive it, the change
will be effective as of the date it was signed by the last Owner to sign,
whether or not an Owner or Annuitant is then alive. The change, however, will be
subject to the rights of any assignee of record with us and subject to any
payment made or other action taken by us before we received and filed the
notice.
Your exercise of any rights will, to the extent thereof, assign, release, or
surrender the interest of the Annuitant and all beneficiaries and Owners under
this contract.
SECTION 5: PREMIUM PAYMENTS AND ALLOCATION
Premium
This contract will begin in effect on the Contract Date provided the initial
premium payment is received by us and the Owner is alive. The initial premium
payment is due on the Contract Date. The amount applied to this contract will be
the premium payments received, minus a deduction for any applicable tax
including premium tax where applicable. Premium payments are payable at our
Annuity Operations Division, but the initial premium payment may be given to an
authorized agent for forwarding to our Annuity Operations Division. No benefit
associated with any such premium payment will be provided until it is actually
received by us at our Annuity Operations Division. Premium payments are subject
to the following conditions:
16
(a) Each premium payment must be at least equal to the Minimum Premium
Payment shown in the schedule pages.
(b) The maximum premium that may be deposited to this contract in any
Contract Year is the Maximum Premium Payment shown in the schedule
pages.
(c) The aggregate of all premium payments paid while the contract is in
force may not exceed the Maximum Aggregate Premium Payment shown in
the schedule pages.
(d) The maximum premium that may be deposited in any Investment Option in
any Contract Year is the Maximum Premium Payment less any amount
previously transferred to such Investment Option in such year.
(e) The maximum premium that may be deposited in the Guaranteed Interest
Account, if available, is equal to the Maximum Guaranteed Interest
Percentage of the Maximum Premium Payment, but not to exceed the GIA
Payment Limit, if any, as shown in the schedule pages.
(f) No premium payments may be deposited to the Guaranteed Interest
Account, if available, after the end of the tenth Contract Year.
(g) No premium payments may be made to this contract after the 85th
birthday of either the Owner or Annuitant.
(h) Premium payments may be made to this contract only prior to the
Maturity Date.
Upon request we will consider waiving any of the above conditions.
Premium Tax
A charge for a premium tax or a similar tax, if any, will be deducted either
from premiums or from the Contract Value if and when such tax is incurred by us.
However, if premium taxes or similar taxes are incurred by us at the time
premiums are paid and we defer the deduction for such taxes, then a deduction
will be made upon any withdrawal under Section 9 and either on the date the
contract is surrendered, the Maturity Date, or the date of payment of the Death
Benefit. Such deduction will be equal to the tax percentage multiplied by (i) in
the case of withdrawals, the Gross Withdrawal, (ii) in the case of surrender or
annuitization, the Contract Value as of the Surrender Date or the Maturity Date
as the case may be, or (iii) in the case of death, the Death Benefit as of the
date of receipt of due proof of death. The tax percentage is equal to the
percentage of premium which the premium tax or similar tax in question
constitutes.
Premium Allocation
Each premium payment will be allocated on its Payment Date to the Guaranteed
Interest Account and Investment Options according to the investment allocation
instructions then in effect. The initial investment allocation is elected by
you. You may elect to change the investment allocation. A change in investment
allocation will be effective as of the end of the business day on which we
receive notice satisfactory to us. Instructions to us must express allocation
percentages as greater than or equal to zero, and less than or equal to 100%,
and the sum of the allocation percentages must equal 100%. Allocation
percentages must be whole numbers. We have the right to impose a limit on the
number and frequency of such changes and to set minimum and maximum percentages
that may be allocated to any Investment Option or the Guaranteed Interest
Account. Unless agreed otherwise, allocations to the Guaranteed Interest account
are limited to the Maximum Guaranteed Interest Account Percentage, shown in the
schedule pages, for each premium payment.
SECTION 6: SEPARATE ACCOUNT AND INVESTMENT OPTIONS
Assets under this contract may be allocated to the Investment Options of the
Separate Account or the Guaranteed Interest Account ("GIA").
Separate Account and Investment Options
The Phoenix Life Variable Accumulation Account is a Separate Account established
by our Company under New York Law and is registered as a unit investment trust
under the Investment Company Act of 1940. The Separate Account contains various
Investment Options that have different investment objectives.
17 ME
All income, gains and losses, realized and unrealized, of the Separate Account
are credited to or charged against the amounts placed in the Separate Account
without reference to other income, gains and losses of our General Account. The
assets of the Separate Account are owned solely by us and we are not a trustee
with respect to such assets. These assets are not chargeable with liabilities
arising out of any other business that we may conduct. The assets of the
Separate Account will be valued at least as often as any policy benefits vary,
but at least monthly.
We use the assets of the Separate Account to buy shares of the underlying
fund(s) of this policy according to your most recent allocation instruction on
file with us. The underlying fund(s) are registered under the Investment Company
Act of 1940 as open-end, management investment companies. Assets of each
Investment Option are invested in shares of the corresponding underlying fund
Series.
No change will be made in the investment policy of any of the Investment Options
of the Separate Account without approval of the appropriate insurance
supervisory official of our domiciliary state of New York. The approval process
is on file with the Department of Insurance.
Addition, Deletion, or Substitution of Investment Options
We have the right, subject to compliance with applicable law, to add, delete, or
substitute Investment Options of the Separate Account, including asset
allocation models and strategies, combine the Separate Account into another
Separate Account, transform the Separate Account into a mutual fund, and/or
deregister the Separate Account under the Investment Company Act of 1940. We
also reserve the right to eliminate the shares of any underlying fund(s) if they
are no longer available for investment, or if we believe investing in any
underlying fund(s) is no longer appropriate for the purposes of the Separate
Account.
Share of Separate Account Investment Option Values
The share of this policy in the value of each Investment Option of the Separate
Account on a business day is the Accumulation Unit Value of that Investment
Option on that date multiplied by the number of this policy's Accumulation Units
in that Investment Option after all transactions for the business period ending
on that day have been processed. For any day which does not fall on a business
day, the share of this policy in the value of each Investment Option of the
Separate Account is determined using the number of Accumulation Units on that
day after all transactions for that day have been processed and the Accumulation
Unit Values on the next business day.
Accumulation Units
The number of Accumulation Units credited to each Investment Option of the
Separate Account will be determined by dividing the premium payment and transfer
amount applied to that Investment Option by the Accumulation Unit Value of that
Investment Option on the Payment Date.
Accumulation Unit Value
The Accumulation Unit Value of each Investment Option of the Separate Account
was set up by us on the first business day of each such Investment Option. The
Accumulation Unit Value of an Investment Option of the Separate Account on any
other business day is determined by multiplying the Accumulation Unit Value of
that Investment Option on the immediately preceding business day by the Net
Investment Factor for that Investment Option for the then current business
period. The Accumulation Unit Value of each Investment Option of the Separate
Account on a day other than a business day is the Accumulation Unit Value on the
next business day. The Accumulation Unit Value of each Investment Option of the
Separate Account on a business day is determined at the end of that day.
Annuity Unit Value
On the first business day selected by us, we set all Annuity Unit Values in each
Investment Option of the Separate Account at $1.000000. The Annuity Unit Value
on any subsequent business day is equal to the Annuity Unit Value of the
Investment Option on the immediately preceding business day multiplied by the
Net Investment Factor for that Investment Option for the business period divided
by 1.000000 plus the rate of interest for the number of days in the business
period based on the Assumed Investment Rate.
18 ME
Net Investment Factor
The Net Investment Factor for each Investment Option of the Separate Account is
determined by the investment performance of the assets underlying the Investment
Option for the business period just ended. The Net Investment Factor is equal to
1.000000 plus the applicable net investment rate for the business period. The
net investment rate is determined by:
1. taking the sum of the accrued net investment income and capital gains
and losses, realized or unrealized, of the Investment Option for the
business period. The net investment income is affected by an
investment advisory expense fee which is deducted from the funds in
which the assets of the Investment Options of the Separate Account are
invested; and
2. dividing the result of (1) by the value of the Investment Option at
the beginning of the business period; and
3. for each calendar day in the business period subtracting from the
result of ((1) divided by (2)), an amount equal to the Mortality and
Expense Risk Fee plus the Daily Administrative Fee and any daily tax
fee.
SECTION 7: TRANSFER OPTIONS
Transfers
Except as provided below, you may elect to transfer amounts among the Accounts
up to twelve times in a Contract Year. If additional transfers are requested,
the Company reserves the right to prohibit such transfers or impose a transfer
charge, not to exceed the Maximum Transfer Charge, shown in the schedule pages,
for each transfer in excess of twelve. You may not exceed the GIA Transfer
Limit, as specified in the schedule pages, when transferring from the GIA,
unless the Dollar Cost Averaging ("DCA") Program or Asset Rebalancing Program is
in effect. After the first Contract Year, a transfer into the GIA will not be
permitted if such transfer would cause the percentage of the Contract Value in
the GIA to exceed the Maximum Guaranteed Interest Account Percentage shown in
the schedule pages. Any transfer charge will be deducted from the Investment
Options or the GIA from which the amounts are to be transferred with each such
Investment Option or GIA bearing a pro-rata share of the transfer charge. The
value of each Investment Option will be determined on the business day that
coincides with the date of transfer. Any Accumulation Units held under an
Investment Option of the Separate Account or Adjusted Premiums held under the
GIA as a result of any transfer shall retain its original Payment Date for
purposes of determining the Surrender Charge. We have the right to prohibit a
transfer less than 30 days prior to the Maturity Date. Transfers may be made by
written request or by telephone or internet notification if a currently valid
written authorization to make changes in this manner is on file with us.
We have the right to require that a period of at least six months have elapsed
between transfers from the GIA. Except as otherwise provided under the DCA
Program, transfers from the GIA cannot exceed the higher of the Maximum GIA
Transfer Amount or the Maximum GIA Percentage of the value of the GIA, as shown
in the schedule pages.
DCA Program
Under the Dollar Cost Averaging Program ("DCA Program"), funds may be
transferred automatically among the Investment Options on a monthly, quarterly,
semi-annual, or annual basis subject to the Minimum DCA Transfer Amounts shown
in the schedule pages. We may require an initial minimum value in the Account
from which funds will be transferred. Funds may be transferred out of only one
Account, but may be allocated to multiple Accounts. We will provide notice if we
make any change in this restriction. Under the DCA Program, you may transfer
approximately equal amounts from the GIA over a minimum 6-month period.
Enhanced DCA Program
New premium under a Dollar Cost Averaging Program may qualify for an enhanced
interest rate if an Enhanced DCA Program is in effect. Under an Enhanced DCA
Program, new premium payments will be credited with an enhanced interest rate.
Each month, amounts will be transferred out automatically to the eligible
Investment Options you select, over a period determined by the terms of the
enhanced program in effect.
19 ME
Asset Rebalancing Program
Under the Asset Rebalancing Program, funds are transferred automatically among
the Investment Options on a monthly, quarterly, semi-annual, or annual basis to
maintain the allocation percentages elected by you. Transfers to or from the GIA
are not permitted under the Asset Rebalancing program. We have the right to
prohibit the Asset Rebalancing and DCA Programs to be in effect at the same
time.
Transfers made under the DCA Program or Asset Rebalancing Program will be
processed on the next business day following your request for the month that
applies. If the value in the applicable Account is below the amount to be
transferred, then the entire remaining balance will be transferred and the DCA
or Asset Rebalancing Programs will be complete. You may terminate your
participation in the DCA or Asset Rebalancing Programs at any time upon written
request. Termination will be effective on the first business day following our
receipt of notice satisfactory to us. You may subsequently provide written
request to initiate a new DCA or Asset Rebalancing Program. Such request will be
effective on the first business day following our receipt of notice satisfactory
to us.
We have the right, in our sole and absolute discretion, to temporarily or
permanently modify or terminate transfer privileges, or reject any specific
order from anyone including the Owner, market-timing organization, or
individual, or other party authorized to give transfer orders whose transactions
would constitute Disruptive Trading as determined by us or an underlying fund
company. Disruptive Trading includes, but is not limited to, frequent purchases,
redemptions and transfers, transfers into and out of an Investment Option in a
short period of time, and transfers of large amounts at one time. In addition to
restricting or terminating transfer privileges we also reserve the right to
limit the dollar amount and frequency of transfers, impose redemption fees on
short-term trading, restrict the method of making transfers, and to require a
holding period for some Investment Options. We also reserve the right to not
accept batch transfer instructions from anyone acting under powers of attorney
for multiple Owners, unless we have entered into a third-party transfer service
agreement. Such transfer limitations could be applied to transfers to or from
some or all of the Accounts. These limitations, individually or in aggregate,
may be applied in any manner reasonably designed to prevent any use of the
transfer right that is considered by us to be to the disadvantage of other
Owners. Any termination, restriction, or limitation on transfer privileges will
be administered in a non-discriminatory manner. If we reject a transfer for any
of these reasons, we will notify you of our decision in writing. We do not
include transfers made pursuant to the DCA or Asset Rebalancing Program when
applying our Disruptive Trading policy.
SECTION 8: GUARANTEED INTEREST ACCOUNT
Guaranteed Interest Account (GIA)
This contract contains a Guaranteed Interest Account ("GIA") to which premium
payments may be allocated. The GIA is not part of the Separate Account. It is
accounted for as part of our General Account. We have the right to add other
Guaranteed Interest Accounts subject to approval by the insurance supervisory
official of the state where this contract is delivered.
We have the right to impose a GIA Payment Limit, as shown on the schedule pages.
We have the right to impose a Maximum Guaranteed Interest Account Percentage
limiting the amount of premium that can be allocated to the GIA and the amount
of Contract Value that can be transferred to the GIA. We will credit interest
daily on any amounts held under the GIA at such rates as we shall determine at
an effective annual rate of interest never less than the Guaranteed Minimum
Interest Rate shown in the schedule pages. At least monthly, we will set a
one-year interest rate that will apply to any premium payment made to the GIA.
When a one year period for any premium payment ends, their Adjusted Premiums
will receive a new one-year interest rate. That rate will remain in effect for
such premium payments, or their resulting Adjusted Premium, for an initial
period of one year. In addition to the rate applicable to the initial one-year
period, we may credit additional interest for periods less than one year. Upon
expiry of the initial one year period, and for any premium payments, or Adjusted
Premiums whose one-year interest rate has just ended, shall be the same rate
that applies to new premium payments made during the calendar week in which the
one-year period expired. Such rate shall likewise remain in effect for such
Adjusted Premiums for a subsequent period of one full year.
20 ME
SECTION 9: WITHDRAWALS, SURRENDER, TERMINATION
Withdrawals
You may request a withdrawal from the Contract Value at any time prior to the
Maturity Date, or at any time for amounts held under variable Annuity Payment
Options K or L. Such withdrawals must be by written request and must include any
tax withholding information we may reasonably require. Applicable Surrender
Charges will be applied as described in this Section 9 and in Section 10. The
Contract Value of each Account will be reduced proportionately, unless otherwise
agreed upon, by the Gross Withdrawal. The payment you will receive is the Net
Withdrawal.
Free Withdrawal Amount
In each Contract Year, you may withdraw a portion of your Contract Value free of
any Surrender Charge. This portion is called the Free Withdrawal Amount. The
Free Withdrawal Amount is equal to A plus B, less C, where:
A = the sum of all premium payments not previously withdrawn that are no
longer subject to Surrender Charges
B = 10% of Eligible Premium Payments
C = Prior free amounts taken within the same Contract Year
Surrender
You may request to surrender your contract at any time prior to the Maturity
Date. Surrenders must be by written request and must include any tax withholding
information we may reasonably require. Applicable Surrender Charges will be
applied as described in this Section 9 and in Section 10. The payment you will
receive is the Surrender Value. The Surrender Value is an amount equal to the
Contract Value less any applicable charges and taxes.
Surrender Charge
A Surrender Charge may apply to a withdrawal or surrender, depending on the date
and amount of such withdrawal or surrender. Each premium payment has its own
surrender schedule. In order to determine the premium payments subject to a
Surrender Charge, withdrawals or surrender will be determined on a first-in,
first-out ("FIFO") basis, based on the effective date of each premium payment.
The charge is calculated by multiplying the amount of the premium payment being
withdrawn still subject to Surrender Charges by the appropriate Surrender Charge
Percentage shown in the Surrender Charge Schedule in the schedule pages, based
on the date of receipt of each premium payment. Surrender Charges will be
applied to the portion of the Contract Value surrendered or withdrawn in excess
of the free withdrawal amount, up to the total of all premium payments received
less prior withdrawals for which a Surrender Charge was applied. You may elect
to apply the amount withdrawn or surrendered to an Annuity Payment Option
described in Section 23.
Systematic Withdrawal Program
Prior to the Maturity Date, you may withdraw amounts automatically on a monthly,
quarterly, semi-annual or annual basis under the Systematic Withdrawal Program.
You may elect to participate in the Systematic Withdrawal Program at any time by
sending a written notice to us.
The minimum initial and subsequent withdrawal amounts must be at least $100.
Withdrawals made under the Systematic Withdrawal Program will be processed on
each Monthly Processing Date and will deduct any applicable tax and Surrender
Charge.
You may terminate your participation in the Systematic Withdrawal Program at any
time upon written notice. Upon completion of the Systematic Withdrawal Program,
you must send a written request if you desire to start another Systematic
Withdrawal Program. The Systematic Withdrawal Program cannot continue beyond the
Maturity Date. The Company has the right to discontinue the Systematic
Withdrawal Program at any time.
Termination
If the Contract Value reduces to zero, the contract will immediately terminate,
unless otherwise determined by an attached rider, amendment, or endorsement. We
will provide you with notice at your most recent post office address on file at
our Annuity Operations Division.
21 ME
SECTION 10: EXPENSE CHARGES
Charges to cover expenses incurred by us in the distribution and administration
of this contract are made in the manner described below.
Mortality and Expense Risk Fee
A Mortality and Expense Risk Fee is deducted from the Contract Value in
accordance with the investment option fees indicated in the schedule pages, as
shown in the schedule pages. Each Investment Option bears a pro rata share of
such expense based on the proportionate value of each of the Investment Options.
We reserve the right to lower such fee.
Daily Administrative Fee
A Daily Administrative Fee is deducted from the Contract Value in accordance
with the investment option fees indicated in the schedule pages, as shown in the
schedule pages. Each Investment Option bears a pro rata share of such expense
based on the proportionate value of each of the Investment Options. We reserve
the right to lower such fee.
Tax
We may include a charge for a premium tax.
Transfer Charge
A transfer charge is as shown in the schedule pages and described in Section 7.
Annual Administrative Charge
An Annual Administrative Charge, as shown in the schedule pages, is deducted
from the Contract Value on each applicable Contract Anniversary. Each Investment
Option and GIA bears a pro rata share of such expense. We reserve the right to
lower such charge. By agreement with us, you may, instead, elect to pay this
charge in cash.
Surrender Charge
A Surrender Charge is deducted as specified in the schedule pages and in
Section 9.
SECTION 11: CONTRACT VALUE
Crediting of Accumulation Units and Premiums
We will apply any premium payments we receive on the Payment Date to credit
Accumulation Units to one or more Investment Options or to credit purchases to
the GIA in accordance with the most recent allocation schedule on file with us.
The number of Accumulation Units credited to each Investment Option will be
determined by dividing the premium payment applied to that Investment Option by
the then current Accumulation Unit Value of that Investment Option. The
Accumulation Unit Value of each Investment Option on a business day is
determined at the end of that day.
Determination of the Contract Value
Prior to the Maturity Date, the value of an Investment Option of the Separate
Account for this contract is determined by multiplying the total number of
Accumulation Units under this contract for that Investment Option by the current
Accumulation Unit Value of that Investment Option. The Contract Value for
amounts held under Variable Payment Annuity Option L is determined in the same
manner. The total value of the GIA equals the total value of the Adjusted
Premiums. The total Contract Value under this contract equals the sum of the
values of each of the Investment Options and the Adjusted Premiums.
The Valuation of Investment Options and Guaranteed Interest Account
The values of the assets in each Investment Option will be calculated in
accordance with applicable law and accepted procedures.
The values and benefits of the GIA are not less than those required by the laws
of the state where this contract is delivered.
All paid-up annuity, cash surrender, and death benefits under this contract are
not less than the minimum benefits required by any statute of the state where
this contract is delivered. Any additional amounts we credit to the contract
will be treated as any other gain in the contract and will increase the paid-up
annuity, cash surrender, and death benefits. Paid-up annuity and cash surrender
benefits will be reduced by any withdrawals. The death benefit following a
withdrawal will be reduced by the same proportion as the Contract Value is
reduced at the time of the withdrawal.
22 ME
We guarantee that expense and mortality results shall not adversely affect the
dollar amount of variable benefits and other contractual payments and values.
Guaranteed Minimum Interest Rate
The Guaranteed Minimum Interest Rate is the minimum rate of interest we will
credit on amounts held in the Guaranteed Interest Account. This rate will never
be less than the statutory required minimum interest rate under applicable state
insurance law. The Guaranteed Minimum Interest Rate will be set on January 1st
of each calendar year and will apply to any deposits, transfers or renewals made
during that calendar year. The Guaranteed Minimum Interest Rate will be equal to
the 5 Year Constant Maturity Treasury (CMT) Rate, less 1.25%, but will never be
less than 1.00% or greater than 3.00%. We will use the 5 Year CMT Rate reported
by the Federal Reserve as of the last business day of November of the prior
calendar year, rounded to the nearest 1/20th of one percent.
SECTION 12: WAIVER PROVISIONS
Nursing Home Waiver
Prior to the Maturity Date, you may surrender your contract or withdraw a
portion of your Contract Value, without a Surrender Charge, provided that:
a. more than one year has elapsed since the Contract Date, and
b. the surrender is requested within two years of the Owner's admission
into a Licensed Nursing Home Facility, and
c. the Owner has been confined to a Licensed Nursing Home Facility for at
least the preceding Elimination Period.
A Licensed Nursing Home Facility is defined as a state licensed hospital or
state licensed skilled or intermediate care nursing facility at which medical
treatment is available on a daily basis. You must provide us with satisfactory
evidence of confinement by written notice.
Terminal Illness Waiver
Prior to the Maturity Date, you may surrender your contract or withdraw a
portion of your Contract Value, without a Surrender Charge, provided that we
receive proof satisfactory to us of the Owner's Terminal Illness. Terminal
Illness is defined as an illness or condition that is expected to result in the
Owner's death within the Terminal Illness Period, shown in the schedule pages.
SECTION 13: DEATH BENEFIT
The death benefit will be determined by the Death Benefit Option shown in the
schedule pages, or as changed following a change of ownership. Under no other
circumstances may the Death Benefit Option change after the contract has been
issued. No Surrender Charge for the year in which the death occurred will be
included in the death benefit calculation. The death benefit provided under this
contract is not less than the minimum benefits required under the laws of the
state where this contract is delivered or issued for delivery.
Death Before Maturity Date
If the contract is held by a single Owner who dies before the Maturity Date, we
will pay the death benefit to the designated Beneficiary upon receipt of a
certified death certificate, or any other proof acceptable to us. If there is
more than one Owner and one of the Owners dies before the Maturity Date, we will
pay the death benefit to the surviving Owner(s), if any, who will be deemed to
be the designated Beneficiary(s).
Spousal Continuation Option
If the spouse of a deceased Owner is entitled to receive all or some portion of
the death benefit, the spouse may elect to continue the contract as the new
Owner. This election is allowed only prior to the Maturity Date and can be
elected only one time. When the spouse elects to continue the contract, the
death benefit that the spouse is entitled to receive will become the new
Contract Value for the continued contract and the current Death Benefit Option
will remain in effect.
23 ME
If the contract is owned by a non-natural person, such as a trust, and the
Annuitant dies before the Maturity Date, we will pay the death benefit to the
Owner. If a Joint Annuitant dies prior to the Maturity Date, a death benefit is
not paid. The Owner may appoint a new Joint Annuitant.
Death Benefit of the Contract
The death benefit under this contract is equal to Death Benefit Option 1: Return
of Premium (as defined below.)
Death Benefit Option 1: Return of Premium
This death benefit is equal to A or B, whichever is greater, where:
A is 100% of premium payments, less Adjusted Withdrawals (as defined
below).
B is the Contract Value next determined following receipt of a certified
copy of the death certificate at our Annuity Operations Division.
Adjusted Withdrawals
The Adjusted Withdrawal is calculated for each withdrawal as the product of A
multiplied by B where:
A is the ratio of the amount of the withdrawal to the Contract Value on
the date of (but prior to) the withdrawal.
B is the death benefit on the date of (but prior to) the withdrawal.
Distribution at Death Requirements
Any Beneficiary who is a natural person entitled to a death benefit, may within
one year after the date of an Owner's death, elect to receive the death benefit
in the form of an Annuity Payment Option. If an Annuity Payment Option is
selected, it may not extend beyond such Beneficiary's life or life expectancy
and the payments must begin within one year after the date of death. If an
Annuity Payment Option is not elected or the Beneficiary is a non-natural
person, the entire death benefit will be distributed in a lump sum no later than
five years after the date of death.
Death On or After the Maturity Date
If an Owner dies on or after the Maturity Date and there is no surviving Owner,
any remaining annuity payments will be paid to the Beneficiary under the Annuity
Payment Option in effect on the date of death. If there is a surviving Owner,
the payments continue as if there had been no death. Payments to the Beneficiary
or surviving Owner may not be deferred or otherwise extended without our prior
approval. If the Annuitant and Joint Annuitant(s), if any, die and are survived
by any Owner, remaining annuity payments, if any, will be paid to such Owner.
Payments will continue under the Annuity Payment Option in effect at the date of
death and may not be deferred or otherwise extended without our prior approval.
SECTION 14: ASSIGNMENT
You may assign your interest in this contact, except as otherwise provided,
without the consent of any person other than an irrevocable Beneficiary. Your
interest, any interest of the Annuitant, and of any revocable Beneficiary shall
be subject to the terms of the assignment.
We will not be considered to have notice of any assignment of an interest in
this contract until we receive the original or copy of the written assignment at
our Annuity Operations Division. In no event will we be responsible for the
validity or sufficiency of any assignment. Any change will be subject to any
payment made or actions taken by us before we received the written assignment at
our Annuity Operations Division.
If this contract is issued in a qualified plan or an IRA, this contract is
subject to assignment restrictions for federal income tax purposes. In such
event, this contract shall not be sold, assigned, discounted, or pledged as
collateral for a loan or as security for the performance of an obligation or for
any other purpose, to any person other than us.
24 ME
SECTION 15: DEFERRAL OF DETERMINATIONS
Transfers and withdrawals will usually be processed within 7 days after we
receive your written request at our Annuity Operations Division. We may postpone
the processing of any such transactions for any of the following reasons:
1. for up to six months from the date of request for any transactions
dependent upon the value of the Guaranteed Interest Account (GIA); or
2. otherwise, to the extent any transactions depend upon the value of any
Investment Option of the Separate Account, for any period during which the
New York Stock Exchange is closed for trading (except normal holiday
closing); or when the Securities and Exchange Commission has determined
that a state of emergency exists such that valuation or disposal of
securities held by any of the Separate Accounts is not practical; or where
the value of any Investment Option of the Separate Account is unavailable
for other trading or pricing purposes.
Rules and regulations of the Securities and Exchange Commission, if any, are
applicable and will govern as to whether conditions described in (2) exist.
For withdrawals from the GIA, we may defer payment for six months from the date
our Annuity Operations Division receives the written request. If payment is
delayed 10 working days or more, we will add interest at an annual rate equal to
that paid under Annuity Payment Options G and H.
SECTION 16: PROOF REQUIRED FOR PAYMENT
We may require proof of the correct Age of the Annuitant and Joint Annuitant, if
any, before any annuity payments begin. We also have the right to require proof
of the identity, Age, sex, and survival of any person entitled to any payment
under this contract or upon whose life any payments depend.
SECTION 17: MISSTATEMENTS
If the Age or sex of the Annuitant or Joint Annuitant has been misstated, any
benefits payable will be adjusted to the amount that the Contract Value would
have purchased based on the Annuitant's or Joint Annuitant's correct Age and
sex. Any overpayment(s) and underpayment(s) made by us will be charged or
credited against future payments to be made under the contract. We will charge
interest on any overpayments and credit interest on any underpayments at the
effective annual rate required by the state where this contract is delivered.
SECTION 18: CHANGE OF MATURITY DATE
You may, by written request, change your Maturity Date at any time within 30
days prior to the Maturity Date. The new Maturity Date must be on or before (a)
the Contract Anniversary nearest the oldest Annuitant's Maximum Annuitant
Annuitization Age, (b) the Contract Anniversary nearest the Oldest Owner's
Maximum Owner Annuitization Age, or (c) ten years from the Contract Date,
whichever is latest, but in no event earlier than the fifth Contract
Anniversary. If no change request is received by us, the Maturity Date will be
as shown in the schedule pages.
SECTION 19: STATEMENT OF ACCOUNT
We will send you a statement of account at least annually, or more frequently,
as required by law. The statement of account will include the Contract Value,
Surrender Value, death benefit, transaction information, and withdrawals. The
statement of account will show any other information required by the state or
federal laws or regulations. The statement will be mailed to your most recent
post office address on file at our Annuity Operations Division.
25 ME
SECTION 20: ANNUITY BENEFITS
On or before the Maturity Date, you may elect any one of the Annuity Payment
Options as described in Section 21. If no election is made, we shall begin to
pay a series of annuity payments automatically to the Owner beginning on the
Maturity Date for the longer of a period certain of 10 years or the life of the
Annuitant. The amount of each annuity payment will be equal to the Contract
Value on the Maturity Date less any applicable tax, divided by $1,000 and then
multiplied by the applicable annuity payment factors.
If the amount to be applied on the Maturity Date is less than $2,000 or would
result in monthly payments of less than $20, we shall have the right to pay such
amount to you in one lump sum in lieu of providing such annuity. We also have
the right to change the annuity payment frequency to annual if the monthly
annuity payment would otherwise be less than $20.
SECTION 21: ANNUITY PAYMENT OPTIONS
Election of an Annuity Payment Option must be made by written request. We
reserve the right to require that the election of an Annuity Payment Option be
in the form of a supplementary contract distributed by us reflecting the terms
of the payment option elected. You may not change the Annuity Payment Option you
elected after the first annuity payment is made. Where the election of an
Annuity Payment Option is made by the Beneficiary of any death benefit payable
under this contract, limited as described in Section 13, the term "Annuitant" as
used below shall refer to such Beneficiary.
Calculation of Fixed Annuity Payments
Under Options A, B, D, E and F, the applicable Annuity Payment Option rate used
to determine the payment amount will not be less than the rate based on the 2000
Individual Annuity Mortality Table with a 10-year age setback and an interest
rate of 2.5%. Under Options G and H, the interest rate is 1.5%. Under Options A,
B, D, E, F, G, and H, the amount of the payment is equal to the Contract Value,
less any applicable Tax, divided by $1,000 and then multiplied by the applicable
Annuity Payment Option rate.
Calculation of Variable Annuity Payments
Under Options I, J, M and N, the applicable payment option rate used to
determine the first payment amount will not be less than the rate based on the
1983a Individual Annuity Mortality Table projected with projection scale G to
the year 2040, with continued projection thereafter and the Assumed Investment
Rate.
Under Option K, the applicable payment option rate will be based on the number
of payments to be made during the specified period and the Assumed Investment
Rate. Under Options I, J, K, M and N, the amount of the first payment is equal
to the amount held in each Investment Option, less any Tax due, divided by
$1,000 and then multiplied by the applicable payment option rate. The first
payment equals the sum of the amounts provided by each Investment Option.
In each Investment Option, the number of fixed Annuity Units is determined by
dividing the amount of the initial payment provided by that Investment Option by
the Annuity Unit Value for that Investment Option on the first Payment
Calculation Date. Thereafter, the number of fixed Annuity Units in each
Investment Option remains unchanged unless you transfer funds to or from the
Investment Option. If you transfer funds to or from a Investment Option, the
number of fixed Annuity Units will change in proportion to the change in value
of the Investment Option as a result of the transfer. The number of fixed
Annuity Units will change effective with the transfer, but will remain fixed in
number following the transfer.
Second and subsequent payments are determined by multiplying the number of fixed
Annuity Units for each Investment Option by the Annuity Unit Value for that
Investment Option on the Payment Calculation Date.
26 ME
The total payment will equal the sum of the amounts provided by each Investment
Option. The amount of second and subsequent payments will vary with the
investment experience of the Investment Options and may be either higher or
lower than the first payment.
Under Option L, we determine the amount of the annual distribution by dividing
the Contract Value by the life expectancy of the Annuitant or the joint life
expectancy of the Annuitant and Joint Annuitant at that time.
We guarantee that neither expenses actually incurred, other than Taxes on
investment return, nor mortality actually experienced, shall adversely affect
the dollar amount of variable annuity payments.
Option A - Life Annuity with Specified Period Certain
Option A is a fixed payout annuity payable monthly while the Annuitant is living
or, if later, the end of the specified period certain. The period certain may be
specified as 5, 10, or 20 years. The period certain must be specified at the
time this option is elected.
Option B - Non-Refund Life Annuity
Option B is a fixed payout annuity payable monthly while the Annuitant is
living. No monthly payment, death benefit or refund is payable after the death
of the Annuitant.
Option D - Joint and Survivorship Life Annuity
Option D is a fixed payout annuity payable monthly while either the Annuitant or
designated Joint Annuitant is living. You must designate the Joint Annuitant at
the time you elect this option. The designated Joint Annuitant must be at least
Age 40 on the first Payment Calculation Date.
Option E - Installment Refund Life Annuity
Option E is a fixed payout annuity payable monthly while the Annuitant is
living. If the Annuitant dies before the annuity payments made under this option
total an amount which refunds the entire amount applied under this option, we
will make a lump sum payment equal to the entire amount applied under this
option less the sum of payments already made.
Option F - Joint and Survivorship Life Annuity with 10-Year Period Certain
Option F is a fixed payout annuity payable monthly while either the Annuitant or
Joint Annuitant is living, or if later, the end of 10 years. You must designate
the Joint Annuitant at the time you elect this option. The Joint Annuitant must
be at least Age 40 on the first Payment Calculation Date.
Option G - Payments for a Specified Period
Option G is a fixed payout annuity payable monthly over a specified period of
time. Payments continue whether the Annuitant lives or dies. The specified
period must be in whole numbers of years from 5 to 30, but cannot be greater
than 100 minus the Age of the Annuitant. However, if the Beneficiary of any
death benefits payable under this contract elects this Payment Option, the
period selected by the Beneficiary may not extend beyond the life expectancy of
such Beneficiary.
Option H - Payments of a Specified Amount
Option H is equal income installments of a specified amount, paid until the
principal sum remaining under this option from the amount applied is less than
the amount of the installment. When that happens, the principal sum remaining
will be paid as a final payment. The amount specified must provide for payments
for a period of at least 5 years.
Option I - Variable Life Annuity with 10-Year Period Certain
Option I is a variable payout annuity payable monthly while the Annuitant is
living or, if later, for ten years. If the Beneficiary of any death benefits
payable under this contract elects this payment option, the period certain will
equal the shorter of 10 years and the life expectancy of such Beneficiary.
Option J - Joint Survivorship Variable Life Annuity with 10-Year Period Certain
A variable payout annuity payable monthly while either the Annuitant or Joint
Annuitant is living, or if later, the end of 10 years. You must designate the
Joint Annuitant at the time you elect this option. The Joint Annuitant must be
at least Age 40 on the first Payment Calculation Date. This option is not
available for the payment of any death benefit under this contract.
27
Option K - Variable Annuity for Specified Period
Option K is a variable payout annuity payable monthly over a specified period of
time. Payments continue whether the Annuitant lives or dies. The specified
period must be in whole numbers of years from 5 to 30, but cannot be greater
than 100 minus the Age of the Annuitant. However, if the Beneficiary of any
death benefits payable under this contract elects this payment option, the
period selected by the Beneficiary may not extend beyond the life expectancy of
such Beneficiary. This option also provides for unscheduled withdrawals. An
unscheduled withdrawal will reduce the number of fixed Annuity Units in each
Investment Option and affect the amount of future payments.
Option L - Variable Life Expectancy Annuity
Option L provides a variable income which is payable over the Annuitant's
annually recalculated life expectancy or the annually recalculated life
expectancy of the Annuitant and Joint Annuitant. This option also provides for
unscheduled withdrawals. An unscheduled withdrawal will reduce the Contract
Value and affect the amount of future payments. Upon the death of the Annuitant
(and Joint Annuitant, if applicable), any remaining Contract Value will be paid
in a lump sum to the Beneficiary.
Option M - Unit Refund Variable Life Annuity
Option M provides variable monthly payments as long as the Annuitant lives. In
the event of the death of the Annuitant, the monthly payments will stop and the
Beneficiary will receive a lump sum payment equal to the value of the remaining
Annuity Units. This value is equal to the sum of the number of remaining Annuity
Units for each Investment Option multiplied by the current Annuity Unit Value
for that Investment Option. The number of remaining Annuity Units for each
Investment Option will be calculated as follows:
(1) the net amount in the Investment Option applied under this option on the
first Payment Calculation Date divided by the corresponding Annuity Unit
Value on that date, minus
(2) the sum of the Annuity Units released from the Investment Option to make
the payments under this option.
You may not transfer any assets under Option M, unless we agree otherwise.
Option N - Variable Non-Refund Life Annuity
Option N is a variable payout annuity payable monthly while the Annuitant is
living. No monthly payment, death benefit or refund is payable after the death
of the Annuitant.
Other Options
We may offer other Annuity Payment Options or alternative versions of the
options listed above.
28
TABLES OF ANNUITY PAYMENT OPTION RATES
The tables in this section show the guaranteed minimum monthly payments for
Fixed Annuity Payment Options A - G, and the minimum initial payment for the
Variable Annuity Payment Options I, J, K, M and N for each $1,000 applied. These
rates are based on the Annuitant's Age and sex. If our rates in effect on the
first Payment Calculation Date are more favorable, we will use those rates.
Subsequent monthly payments for the Variable Annuity Payment Options will vary
and may be higher or lower than the first payment. Amounts for payment
frequencies, periods, Ages and any current rate information not shown will be
provided upon request.
The term "Age" as used in the tables refers to the actual Age of the Annuitant
on the first Payment Calculation Date.
Options A & E - Life Annuity with Specified Period Certain; Installment Refund
Life Annuity
Installment Refund 5 Years Certain 10 Years Certain 20 Years Certain
------------------ --------------- ---------------- ----------------
Age Male Female Male Female Male Female Male Female
--- ----- ---------- ----- ------- ----- -------- ----- --------
40 $2.85 $2.76 $2.90 $2.79 $2.89 $2.79 $2.89 $2.78
45 2.99 2.88 3.05 2.92 3.05 2.92 3.03 2.91
50 3.15 3.02 3.24 3.08 3.24 3.08 3.21 3.06
55 3.35 3.20 3.48 3.28 3.47 3.28 3.42 3.25
60 3.58 3.41 3.79 3.54 3.76 3.53 3.67 3.48
65 3.87 3.68 4.17 3.87 4.13 3.85 3.97 3.76
70 4.24 4.01 4.67 4.30 4.61 4.26 4.30 4.09
75 4.68 4.44 5.36 4.88 5.21 4.81 4.63 4.45
80 5.24 4.98 6.28 5.68 5.97 5.51 4.92 4.80
85 5.93 5.67 7.49 6.81 6.82 6.41 5.12 5.07
90 6.78 6.55 9.04 8.38 7.70 7.42 5.22 5.21
Option B - Non-Refund Life Annuity
Age Male Female
--- ----- ------
40 $2.90 $2.79
45 3.05 2.92
50 3.24 3.08
55 3.49 3.28
60 3.79 3.54
65 4.18 3.87
70 4.69 4.31
75 5.40 4.90
80 6.38 5.73
85 7.73 6.94
90 9.61 8.73
29
Option D - Joint and Survivorship Life Annuity
Male Age
------------
Female
Age 40 45 50 55 60 65 70 75 80 85 90
------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
40 $2.65 $2.69 $2.72 $2.74 $2.75 $2.76 $2.77 $2.78 $2.78 $2.78 $2.79
45 2.71 2.76 2.80 2.84 2.86 2.88 2.89 2.90 2.91 2.91 2.92
50 2.75 2.82 2.89 2.94 2.98 3.01 3.04 3.05 3.06 3.07 3.07
55 2.79 2.88 2.97 3.05 3.11 3.16 3.20 3.23 3.25 3.26 3.27
60 2.82 2.93 3.04 3.15 3.24 3.33 3.40 3.45 3.48 3.51 3.52
65 2.84 2.96 3.09 3.23 3.37 3.50 3.61 3.70 3.76 3.80 3.83
70 2.86 2.99 3.14 3.31 3.49 3.66 3.83 3.98 4.09 4.18 4.23
75 2.87 3.01 3.18 3.37 3.58 3.81 4.05 4.28 4.48 4.63 4.74
80 2.88 3.03 3.20 3.41 3.65 3.93 4.25 4.58 4.89 5.17 5.38
85 2.89 3.04 3.22 3.44 3.70 4.03 4.41 4.84 5.31 5.76 6.15
90 2.89 3.04 3.23 3.46 3.74 4.09 4.52 5.05 5.67 6.34 6.99
Option F - Joint and Survivorship Life Annuity with 10-Year Period Certain
Male Age
------------
Female
Age 40 45 50 55 60 65 70 75 80 85 90
------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
40 $2.65 $2.69 $2.72 $2.74 $2.75 $2.76 $2.77 $2.78 $2.78 $2.78 $2.79
45 2.71 2.76 2.80 2.84 2.86 2.88 2.89 2.90 2.91 2.91 2.91
50 2.75 2.82 2.89 2.94 2.98 3.01 3.04 3.05 3.06 3.07 3.07
55 2.79 2.88 2.97 3.04 3.11 3.16 3.20 3.23 3.25 3.26 3.27
60 2.82 2.93 3.04 3.15 3.24 3.33 3.40 3.45 3.48 3.50 3.52
65 2.84 2.96 3.09 3.23 3.37 3.50 3.61 3.70 3.76 3.80 3.82
70 2.86 2.99 3.14 3.31 3.48 3.66 3.83 3.98 4.09 4.17 4.21
75 2.87 3.01 3.17 3.36 3.58 3.81 4.05 4.27 4.47 4.61 4.71
80 2.88 3.03 3.20 3.41 3.65 3.93 4.24 4.56 4.87 5.12 5.31
85 2.89 3.04 3.22 3.44 3.70 4.02 4.39 4.82 5.26 5.67 5.99
90 2.89 3.04 3.23 3.45 3.73 4.08 4.50 5.01 5.58 6.15 6.66
30
Option G - Payments for a Specified Period
Number of Annual Monthly
Years Installment Installment
--------- ----------- -----------
5 $206.00 $17.28
6 172.93 14.51
7 149.32 12.53
8 131.61 11.04
9 117.84 9.89
10 106.83 8.96
11 97.83 8.21
12 90.33 7.58
13 83.98 7.05
14 78.55 6.59
15 73.84 6.20
16 69.72 5.85
17 66.09 5.55
18 62.86 5.27
19 59.98 5.03
20 57.38 4.81
25 47.55 3.99
30 41.02 3.44
Option I - Variable Payment Life Annuity with 10-Year Period Certain
Age Male Female
--------- ----------- -----------
40 $4.15 $4.02
45 4.29 4.12
50 4.40 4.27
55 4.73 4.46
60 5.06 4.71
65 5.51 5.05
70 6.08 5.52
75 6.79 6.17
80 7.65 6.99
85 8.57 7.98
Option J - Joint Survivor Variable Payment Life Annuity with 10-Year Period
Certain
Male Age
Female -------------------------------------------------------------
Age 40 45 50 55 60 65 70 75
------ ----- ----- ----- ----- ----- ----- ----- -----
40 $3.92 $3.94 $3.96 $3.98 $3.99 $4.00 $4.00 $4.01
45 3.96 4.00 4.03 4.06 4.08 4.09 4.10 4.11
50 4.00 4.05 4.10 4.15 4.18 4.21 4.23 4.24
55 4.03 4.10 4.18 4.24 4.30 4.35 4.39 4.41
60 4.06 4.15 4.25 4.34 4.43 4.52 4.58 4.63
65 4.09 4.19 4.31 4.44 4.57 4.70 4.81 4.90
70 4.11 4.22 4.36 4.53 4.70 4.89 5.07 5.22
75 4.12 4.75 4.41 4.60 4.82 5.07 5.34 5.59
31
Option K - Variable Payment Annuity for a Specified Period
Number of Annual Monthly
Years Installment Installment
--------- ----------- -----------
5 $217.98 $18.53
6 185.53 15.77
7 162.39 13.81
8 145.08 12.34
9 131.65 11.19
10 120.94 10.28
11 112.20 9.54
12 104.94 8.92
13 98.83 8.40
14 93.61 7.96
15 89.10 7.58
16 85.18 7.24
17 81.74 6.95
18 78.70 6.69
19 75.99 6.46
20 73.57 6.25
25 64.53 5.49
30 58.75 5.00
Option M - Variable Payment Life Annuity with Unit Refund
Age Male Female
--------- ----------- -----------
40 $4.12 $4.01
45 4.25 4.11
50 4.42 4.24
55 4.64 4.41
60 4.92 4.64
65 5.28 4.94
70 5.74 5.33
75 6.32 5.86
80 7.07 6.55
85 8.01 7.43
Option N - Variable Payment Life Annuity
Age Male Female
--------- ----------- -----------
40 $4.15 $4.02
45 4.30 4.13
50 4.50 4.27
55 4.76 4.47
60 5.11 4.73
65 5.60 5.09
70 6.29 5.60
75 7.20 6.34
80 8.49 7.41
85 10.30 8.98
32
[LOGO PHOENIX]
Flexible Premium Deferred Variable Annuity
Nonparticipating - not eligible for dividends
08VA 33 ME
